SummaryWith the UK arguably one of the most advanced online grocery sectors in the world, we take a look at where the growth will come from next. Using survey data for over 20,000 consumers in 24 countries, we proved insight and analysis from across the globe, as well as case studies and examples of successes and failures. We have identified key markets which will see growth from online grocery retail

Key Findings- Use our country profiling to identify markets with the most potential

- Use in-depth analysis and insight to identify those retailers with the ability to expand globally

- Understand the issues surrounding click and collect to uncover its potential and make your online business profitable

SynopsisPopulation growth will shape retailer expansion plans over the coming years, with different countries becoming suitable for online grocery at different times. Online relies on many different criteria to be fulfilled in order to be a success, one of the key ones is socially and technologically active group of younger consumers.

Retailers will need to tailor solutions to differing population densities both on a national and international level. Low density areas will be well suited to collection points which mitigate the need for long delivery journeys, while higher density areas will have a need for fast fulfilment to prove an alternative to convenience retailing

Online is not just about having a transactional website. Those retailers without one, and without the ability to invest still need to have a significant and active online presence. This needs to be via their own websites as well as through social media. Engaging shoppers on both will be fundamental to increasing footfall

Reasons To Buy- Which countries will be the best for online grocery in the next 5, 10, 15 and 25 years owing to their projected population growth?

- How can retailers adapt their models in countries where population density doesn't immediately suit itself to online grocery?

- Which retailers will be able to expand their models internationally in order to take advantage of growing middle classes in emerging markets?

- What impact will Amazon have on the global online grocery market and how will it be able to adapt its model to aid smaller retailers to move online?

Table Of Contents

Global Online Grocery Retail | Verdict Sector ReportTable of Contents1 Overview2 Key Findings2.1 Shoppers need a seamless experience2.1.1 Perfecting the customer journey will align instore and online offers2.2 Retailers must overcome resistance to online2.2.1 Population growth must shape online expansion plans2.3 Retailers need to adapt strategy to meet local requirements2.3.1 Regional population density variations will provide challenges2.4 Morrisons deal opens up Ocado for global expansion2.4.1 Pureplay retailers have a significant future2.5 Click and collect must become a bigger fulfilment channel2.5.1 Retailers must use alternatives to loss-making home delivery2.5.2 Online visual merchandising remains poor2.5.3 Interactivity brings instore service online2.5.4 Customers must be able to shop between channels2.6 Online doesn't necessarily mean transactional2.6.1 Social media connects retailers and shoppers2.6.2 Shoppers would rather engage than buy2.6.3 Word of mouth speaks volumes3 Population Growth Should Shape Retailers' Expansion Plans3.1 Retailers must overcome resistance to online shopping3.1.1 Ageing population creates more resistance to adoption of online shopping3.1.2 Retailers must identify markets where demand is not catered for3.1.3 Younger populations will drive the growth in online shopping3.2 Which countries are ready for online shopping now?3.2.1 Poland's robust economy will support online shopping3.2.2 Turkey ready for online shopping, with a growing time-poor middle class3.2.3 Significant opportunities as well as challenges await in Australia3.2.4 Not all markets will work though3.3 Which countries will be ready for online shopping in 2020?3.3.1 Arab states offer opportunities for retailers3.3.2 Restrictions on women's rights provide opportunities in Saudi Arabia3.4 Which countries will be ready for online shopping in 2025?3.4.1 Two examples of demand that is not currently catered for3.4.2 India opening up provides retailers with opportunities3.4.3 Mobile growth must be the focus in South Africa4 Regional Density Variations Provide Challenges for Retailers4.1 Retailers must adapt their strategy to meet local requirements4.1.1 There is not a one size fits all solution4.1.2 The developed UK model might not work elsewhere4.1.3 Retailers must be prudent in their approach to expansion4.1.4 Changing traditional shopping habits will take time4.1.5 Convenience will win out4.1.6 Fresh food remains a big challenge for retailers4.2 High population densities are the ideal testing ground4.2.1 Well-connected areas provide online shopping opportunities4.2.2 Retailers must invest in efficient fulfilment methods4.2.3 Despite nationwide coverage, regional differences will still exist4.2.4 Pureplays can work in densely populated areas4.2.5 Use of own delivery fleet not a necessity4.2.6 German example highlights that success is not guaranteed4.3 Retailers must be innovative to succeed in tougher locations4.3.1 Provides a much tougher proposition for retailers4.3.2 Using separate delivery companies will ease the pressure4.3.3 Lower expectations of online shopping4.3.4 Collection points can provide convenience4.3.5 Local solutions can fill gaps in the market4.3.6 High demand for online shopping in Brazil5 Leasing the Pureplay Model5.1 Morrisons deal opens up Ocado for expansion5.1.1 Ocado is no longer a retailer5.1.2 UK model provides template in two ways5.1.3 Morrisons online model shows partnership potential5.2 Ocado unlikely to enter organically5.2.1 Not profitable without store based offer5.2.2 Product sourcing and competition challenges5.3 Grocery retailers with no online offer is the logical step5.3.1 Ocado model provides a quick route to market5.3.2 Investment in fulfilment centres5.3.3 Fast and scalable expansion for the retailer5.3.4 Fast and scalable expansion for Ocado5.3.5 Managing shopper expectations from the start5.4 Non-grocery retailers with growing competition5.4.1 Simple entry to grocery market5.4.2 Technical excellence gives edge over established grocers5.4.3 Product sourcing will be an issue5.5 Ocado not the only provider with potential5.5.1 Others can develop similar systemsâ¦5.5.2 â¦But high levels of investment are required5.5.3 Amazon offer has potential5.5.4 Teaming up with smaller retailers essential5.5.5 Model is replicable6 What's the Collection Point?6.1 Click and collect must become a significant fulfilment channel6.1.1 Retailers must make it easier to click and collect6.1.2 Same day collection encourages widespread use7 Methodology7.1 Verdict e-retail data8 Appendix8.1 About Verdict Retail8.2 Disclaimer

List of TablesTable 1: Rankings for the extent to which online shopping currently happens and how appealing it would be, 2013

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